Author Question: If the demand for money increases, but the Fed keeps the money supply the same: a. nominal interest ... (Read 65 times)

lindiwe · **on:** Jun 30, 2018

If the demand for money increases, but the Fed keeps the money supply the same:
a. nominal interest rates will rise and aggregate demand will fall.
b. nominal interest rates will rise and aggregate demand will rise.
c. nominal interest rates will fall and aggregate demand will fall.
d. nominal interest rates will fall and aggregate demand will rise.

Question 2

Per capita real GDP is of limited use as a measure of economic well being for all the following reasons, except:
a. it says nothing about the quality of the environment.
b. it does not reflect the degree of personal freedom in a society.
c. it is not adjusted for changes in leisure time.
d. it is not adjusted for changes in the rate of inflation.
e. it says nothing about the distribution of income.